Starbucks Opens First Store In India

October 30, 2012

India is no longer an untapped market for Starbucks. Earlier this month, the coffee chain debuted in Mumbai, its first outlet in the world’s second most populous country. The flagship Mumbai store was the first of three grand openings in October under a joint-venture agreement Starbucks signed with Tata Global Beverages Ltd.last January. Tata is part of the Tata Group conglomerate, which owns Eight O'Clock Coffee in the U.S.

The two-story, 4,500-sq.-ft. flagship store in Mumbai’sHorniman Circle is three times the size of the typical Starbucks café. Another new Starbucks unit is located at the Taj Mahal Hotel & Palace.

"This is a major milestone for us," said Starbucks CEO Howard Schultz of their debut in India. The Seattle company has stores in 61 countries and had been looking at entering the Indian market for five years. Schultz said that India and China would be the largest growth markets for the company, which plans to open 200 stores a year in the U.S. for the next five years and double its presence in Mexico. The original agreement with Tata calls for 50 new units.

Coffee competitor Dunkin' Brands opened its first café in New Delhi earlier this year. It now has five stores and plans for up to another 25.